Let's take a quick look at the hourly chart of the S&P-500...
As you can see, the S&P-500 has been trending downwards and within an expanding channel for the past three and a half weeks. The lower end of the channel was touched just after the open today. If the channel holds (a brief breach of the lower line is permissible), traders should be on the lookout for a move towards the upper end of the channel (and possibly a breakout to the upper line) over the coming 1-3 sessions.
If the index trades below the lower line for more than say an hour or two, the channel will be defunct.
Traders will also want to keep an eye on RSI on the hourly chart; a potential positive divergence is present, as seen on the chart above. Note that hourly MACD is also at quite low levels.
If the lower line remains intact, upside targets of 745-750 or so come into the picture over the next couple of sessions. If the upper line is then breached, recent resistance at 780 and the gap at 825 will then be seen as near-term targets.
« S&P-500 Hourly Chart »
Let's take a quick look at the hourly chart of the S&P-500...
As you can see, the S&P-500 has been trending downwards and within an expanding channel for the past three and a half weeks. The lower end of the channel was touched just after the open today. If the channel holds (a brief breach of the lower line is permissible), traders should be on the lookout for a move towards the upper end of the channel (and possibly a breakout to the upper line) over the coming 1-3 sessions.
If the index trades below the lower line for more than say an hour or two, the channel will be defunct.
Traders will also want to keep an eye on RSI on the hourly chart; a potential positive divergence is present, as seen on the chart above. Note that hourly MACD is also at quite low levels.
If the lower line remains intact, upside targets of 745-750 or so come into the picture over the next couple of sessions. If the upper line is then breached, recent resistance at 780 and the gap at 825 will then be seen as near-term targets.
Have a good trading day!